How E-Commerce Businesses Save Money on Shipping Costs

by / ⠀Blog / April 10, 2023
shipping costs

E-commerce businesses ship products to their customers. They depend on mail services to keep their businesses afloat – and their customers happy! With rising shipping costs with all of the major carriers and ever-increasing costs of supplies, e-commerce businesses often feel the financial strain shipping creates. Luckily, saving money on rising shipping costs is possible, so don’t hang up the towel just yet. Save more money on shipping costs using the expert advice below.

Small and mid-size businesses can use a plethora of ideas to cut the costs of shipping -and keep more money in the bank. We recommend utilizing as many techniques from this list as possible to maximize the savings.

Discounted Shipping Rates

Take advantage of discounted shipping rates offered to business owners. Among the different options for discounted shipping rates:

  • Carrier-based discounted shipping rates. Designed for companies utilizing high-volume shipping, carrier-based discounts often chop between 10% and 20% off regular rates. Not all companies offer high-volume discounts. Inquire with companies of interest to learn about their discounts, if any.
  • Shipping clubs and rewards provide small to mid-size businesses discounted rates and other perks, such as discounted rates for shipping supplies.
  • Loyalty programs can also put money back into your bank account. Different carriers offer different loyalty programs. Check them out.
  • Apply for a rewards-based company credit card. Pay for boxes, shipping supplies, and shipping fees with the card and rack up the cashback rewards. Use the rewards any way you wish, including to cover the costs of shipping on future shipments.

Learn more about each potential discount above and take advantage of as many as possible. Shipping discounts can cut rates by as much as 20% -and sometimes more.

Use the Right Packaging

Using boxes too large for items can also cost businesses money. Some companies design customized boxes for their products, although such a drastic step isn’t necessary to save money, so long as you make the commitment to change packaging based on product size. Always choose boxes that are sized proportionally to the item being shipped.

USPS Flat-Rate Shipping

The USPS offers free flat-rate boxes and flat-rate shipping, potentially saving business owners hundreds of dollars or more in annual shipping costs. Pick up a few boxes from your local post office or order flat-rate boxes online.

Fill the box with items and ship it for one low cost, regardless of its weight. If you ship bulky items, flat-rate shipping is the way to go to keep costs low. Click here to find out more.

Choose the Right Shipping Locations

As nice as the idea sounds, providing goods to people anywhere in the world may not be possible, especially if your company sells large or bulky items. The package destination affects shipping costs; shipping to some locations may not be feasible. Research shipping costs and eliminate shipping options to any city, state, or country with exaggerated rates.

Add Shipping Costs Into Product Costs

Advertise products with free shipping, then build the costs of shipping and reverse logistics like product returns, into the product price. This secret has worked for businesses for years. Customers never realize they have paid shipping costs since they still get a great deal.

Pre-Pay for Shipping

Purchasing shipping labels upfront is convenient and simplifies life. Companies like UPS may also provide nice discounts to business owners that purchase pre-paid shipping labels. Right now, business owners can pre-pay to receive discounts of up to 20%.

Make the Switch From Boxes

Tossing items inside a box, stuffing it with paper, and taping it shut is super quick and easy. Shipping Everything you sell inside a box can also be the more expensive shipping route. Poly mailers and envelopes may work for items that you currently ship in boxes. Making the switch can save money on shipping costs and supplies.

Buy Shipping Supplies in Bulk

Buying shipping supplies in bulk lessens your workload and ensures you never run out of the things you need most, like tape, bubble wrap, and similar items. Many suppliers offer bulk-rate pricing discounted by as much as 75% off the original single unit price. If shipping costs overwhelm your budget, consider buying supplies in bulk to get some financial relief.

Discounted Supplies

Big-box transport companies often offer discounted rates on shipping supplies to business owners, including e-commerce businesses. Create a business account with carriers like UPS and FedEx to take advantage of the discounted rates -and stock up on bubble wrap, tape, and all the other shipping necessities.

 Offer In-Store Pickup

Companies with brick-and-mortar locations can offer in-store pick-up to help reduce the expense of shipping goods. This option benefits the business and the customer. Businesses save money and time while customers have their items in hand much more quickly. Everyone wins with in-store pickup.

Consider All Shipping Methods

Several shipping methods can get your goods to their destination. The cost of each shipping method, as well as the speed of shipping, differ. It is a good idea to consider the different shipping methods to find the most financially-friendly option available.

First-class mail is the cheapest shipping option available from USPS. The shipping method also happens to be the slowest, with packages taking up to 10 days to arrive at their destination.

Save Money and Do More Using  Shipping Software

Large e-commerce businesses may find shipping software beneficial. This special software can help save business owners money using features such as shipping cost calculations, label printing, and inventory management. Although monthly maintenance fees apply, business owners find the costs worth the expenditure. Research a few of the options to find software that works for your needs.

Keep Costs Low: Save Money on Shipping Costs

Now, saving more money is simple -and you will not sacrifice customer satisfaction to cut costs.  Shipping costs shock us these days. E-commerce business owners know this all too well and feel the effects on their budgets. Saving money on shipping costs is simple when using the expert ideas above. Keep your e-commerce business alive and well by taking advantage of shipping discounts!

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